REPORT: PREIT On Verge Of Second Bankruptcy With Looming Debt Maturity

chilly hill mall
The Interior Of Cherry Hill Mall In New Jersey, A Preit Property

Pennsylvania Real Estate Investment Trust is on the verge of its second bankruptcy since 2020, Bloomberg reports, citing anonymous sources close to the matter. The company is also seeking funding to facilitate the process, which would be a Chapter 11 reorganization.

PREIT didn't respond to a request for comment from Bisnow Monday morning.

PREIT, which specializes in shopping malls, posted a third-quarter net loss of about $63.9M and faces a Dec. 10 maturity date for $1B in credit facilities. The facilities, held primarily by Wells Fargo Bank, have no further extension options.

The company also reported that same-store net operating income decreased 5.3% in Q3 compared to the same period in 2022, and core mall total occupancy decreased by 70 basis points to 93.6% compared to Q3 2022. Core mall non-anchor occupancy decreased by 1% to 90.3% over the year.

PREIT's previous bankruptcy came in the wake of the pandemic, which drove people out of malls and retailers into contraction mode, at least temporarily. The company emerged from that bankruptcy with access to $130M in new financing.

PREIT stock bounced up from 14 cents per share to 25 cents on Monday morning before dropping by 2 cents. PREIT has been trading as a penny stock since May.

As recently as mid-2019, PREIT stock traded for more than $100 a share.

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